Nomura named 3 reasons of U.S. dollar fall

Baku. 6 September. REPORT.AZ/ The group of currency strategists said they predict the further weakening of the U.S. dollar in the long term.

Report informs citing the Russian media, experts of Japan's largest brokerage company Nomura made a statement. In their opinion, there are 3 main reasons for this. First, the weakness of the U.S. currency, which we have observed so far, is due to a decrease in profitability in the U.S. But not only.

In addition, the balance of payments also has a negative impact on the currency. The United States suggest investors too low real yield, given the size of the existing deficits.

To level the situation, it is necessary, either further weakening of the dollar, so that make US assets more attractive, or an increase in profitability in the US, or both.

Thirdly, the policy of the administration of Donald Trump will continue to focus on a weaker rate of the American currency. Political risks in the US will continue to put pressure on the dollar, while the situation in the euro area will continue to show improvement.

Nomura is confident that U.S. dollar will further depreciate both against euro and yen.